Will Soon Flourish

This is a blog about success and happiness, whether it's financial, social, emotional, family or other forms of success.
As the blog name implies, this is positive optimism, positive in values and aspirations.
Let us be a source of news, inspiration, dreams, hope and a dynamic forum for exchange of ideas!

Sunday, March 9, 2014

Dare to think and try new ideas, new things, new ventures, new experiences! "Never be afraid to try something new. Remember, amateurs built the ark. Professionals built the Titanic." Who said this? :)Image below of Noah's Ark sourced from shortstoriesshort.com

Image below of the sinking ship Titanic sourced from www.deviantart.com

Friday, December 13, 2013

Favorite 2013 books by the world's wealthiest billionaires like Warren Buffett and Carlos Slim, also leaders like Israel Prime Minister Benjamin Netanyahu, top thinkers
Let us enjoy reading books in order to enrich our minds and our bank accounts, in order to be leaders!

In this age of the ubiquitous social media and other high-tech distractions, it is good to realize from a recent survey by Bloomberg News of top tycoons, business, political, academe and other leaders that they are still spending time to read books.

Good books are still repositories of intellectual resources, logic, critical thinking, analyses, research and good language, and we should encoyrage our leaders and everyone else to read more good books.

Investor Warren Buffett enjoyed
learning more about how his son tries to tackle world hunger, while fellow
billionaire Carlos Slim studied how General Motors Co. and AT&T Inc.
reinvented themselves.

Pacific Investment Management Co.
Chief Executive Officer Mohamed El-Erian zeroed in on U.S. politics
and U.S. Treasury Secretary Jacob J. Lew sought insight in the work of his
predecessors. Israeli Prime Minister Benjamin Netanyahu looked at American
prosperity, while World Bank President Jim Yong Kim probed innovation.

These were some of the responses
to the annual Bloomberg News survey, which asked CEOs, investors, current and
former policy makers, economists and academics to name their favorite books of
2013.

The most popular selection was
“The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White and the
Making of a New World Order” by Benn Steil. Others included “The Everything
Store: Jeff Bezos and the Age of Amazon” by Brad Stone, a senior writer at
Bloomberg Businessweek; “The War That Ended Peace: The Road to 1914” by
Margaret MacMillan and “The Alchemists: Three Central Bankers and a World on
Fire” by Neil Irwin.

Howard G. Buffett, chairman of
the Howard G. Buffett Foundation

“The Idealist: Jeffrey Sachs and
the Quest to End Poverty” by Nina Munk: Illuminated the flaws of trying to
impose Western thinking on Africa. “Jeff
Sachs’ ‘Millennium Villages’ tried to create a recipe for lifting regions out
of poverty through massive aid and development plans designed from a distance
by people who lacked a deep understanding of farming. This book is stark proof
that approach just does not work. Farming is context-specific, and any plan
that is not created from the ground up in partnership with local people who are
invested not only in increasing agricultural productivity, but the development
of sustainable markets, is doomed. The world needs to pay attention to these
lessons and stop wasting resources.”

Warren Buffett, chairman and CEO
of Berkshire Hathaway Inc.

“40 Chances: Finding Hope in a
Hungry World” by Howard G. Buffett and Howard W. Buffett: He thought he knew
his son Howard’s story pretty well, but he says he was surprised to read his
book. In it, he realized the evolution of Howard from a child of limitless
energy but little direction into a serious philanthropist was dramatic. “It’s
an absolutely authentic story, every chapter of it. I actually went back and
read it again because I could watch how he became a man with all the best
qualities of his mother, but also gained so much knowledge about farming. The
book’s format involves relatively short stories that tell you about human
beings that very few of us have ever encountered who are living in extreme and
extraordinary environments. Howie has gone to these places and met the people.
He understands their needs. His empathy fuels his passion to deliver real
results to those who have hope and not much else.”

Paul Achleitner, supervisory
board chairman of Deutsche Bank AG

“Why the West Rules -- for Now:
The Patterns of History and What They Reveal About the Future” by Ian Morris:
Helps to illustrate the intersection of time and change in human history.

“Antifragile: Things That Gain
from Disorder” by Nassim Nicholas Taleb: Asserts that institutions cannot only
withstand volatility but also have the opportunity to get better because of it.

Anat Admati, professor of finance
and economics at Stanford Graduate School of Business

“Austerity: The History of a
Dangerous Idea” by Mark Blyth: Recounts some of the disastrous aftermath of
rigid austerity policies over the years. He rightly points to reckless banks
and bailouts as key to the current crisis in Europe,
but this problem can be traced to failed regulation and the symbiosis of banks
and governments. Citizens everywhere must demand better financial regulation. Blyth warns that austerity can threaten democracy.

“Democracy in Retreat: The Revolt
of the Middle Class and the Worldwide Decline of Representative Government” by
Joshua Kurlantzick: Provides an insightful explanation of the recent setbacks
in achieving quality democratic systems in the developing world. Kurlantzick
points to why U.S.
governments have not done as well as they could to bring about democracy’s most
important benefits such as freedom and civil rights. It’s particularly
difficult to view Washington,
D.C., as the source of good
policy and wisdom after reading.

“This Town: Two Parties and a
Funeral-Plus, Plenty of Valet Parking!-in America’s Gilded Capital” by Mark
Leibovich: Made me laugh but also want to cry at some of the silliness and the
increasing disconnect of This Town from the rest of society. The corrosive
impact of “Big Money” and politics, lamented by others, is in full display.

“The Reason I Jump: The Inner
Voice of a Thirteen-Year-Old Boy with Autism” by Naoki Higashida (translated by
KA Yoshida and David Mitchell). I urge everyone to read this. We take too much
for granted, particularly our ability to communicate. Some brains are very
different. More empathy would help.

“Born to Run: A Hidden Tribe,
Superathletes and the Greatest Race the World Has Never Seen” by Christopher
McDougall

“My Way: An Autobiography” by
Paul Anka

“American Turnaround: Reinventing
AT&T and GM and the Way We Do Business in the U.S.A.” by Ed Whitacre

“The One World Schoolhouse:
Education Reimagined” by Salman Khan.

Vindi Banga, operating partner at
Clayton Dubilier & Rice LLP and a former president for global foods, home
and personal care at Unilever

“The Everything Store: Jeff Bezos
and the Age of Amazon” by Brad Stone: Full of management lessons and an
inspiration for every young entrepreneur on what can be achieved in half a
lifetime.

“The Alchemists: Three Central
Bankers and a World on Fire” by Neil Irwin: A fascinating story of the three
central bankers. Each a very different individual with his own beliefs,
combating the crisis in very different political contexts.

“Big Data: A Revolution That Will
Transform How We Live, Work and Think” by Viktor Mayer-Schonberger and Kenneth
Cukier: If the last decade belonged to those who used the Internet to invent
new business models; the next decade will belong to those who possess and
harness the power of Big Data.

Fiona Woolf, lord mayor of the
City of London

“Giving is Good For You: Why
Britain Should be Bothered and Give More” by John Nickson: Made me confront my
own attitude to giving. It made me want to do more of it in a way of actually
feeling good about the contribution you can make to the sort of societal issues
you undertake in the role of lord mayor. And it read like a novel.

Jacob J. Lew, U.S. Treasury
secretary

“The Founders and Finance: How
Hamilton, Gallatin, and Other Immigrants Forged a New Economy” by Thomas K.
McCraw

“The Signal and the Noise: Why So
Many Predictions Fail -- but Some Don’t” by Nate Silver

Ian Bremmer, president of the
Eurasia Group and global research professor at New YorkUniversity

“Average is Over: Powering
America Beyond the Age of the Great Stagnation” by Tyler Cowen: A highly
informative read, unpacking a key factor underlying the growing inequality
taking shape in the U.S. today: The middle class is thinning as a top echelon of
high achievers makes good on structural advantages that the system affords them
while the rest of the working population faces stagnation. Cowen’s book serves
as both a cutting economic history of the past thirty years, and a predictor
for where new trends and technologies are taking us. It is highly analytic,
thought-provoking, and debate-inducing...yet refreshingly non-polemic.

“China Goes Global: The Partial
Power” by David Shambaugh: I have long argued that we have entered the era of
what I call the G-Zero, a global order where no country or group of countries
can sustainably drive the international agenda. Shambaugh’s compelling thesis
is likely the single biggest structural reason behind this breakdown in global
leadership. China’s
growing international reach cannot be denied; it has become sufficiently
important economically to scuttle many international policies that do not suit
its interests. But as China
grows rapidly, its willingness and ability to engage in global affairs and
promote its own values and priorities has come along much more haltingly. The
result is a “partial power:” a China
that can upend the global order, but cannot spearhead a new one of its own.
This book offers a balanced, thoughtful, critical understanding of why China mustn’t be ignored -- but why it won’t be
replacing the U.S.
any time soon.

“Naked Statistics: Stripping the
Dread from the Data” by Charles Wheelan: From smartphones that track our
coordinates and even our sleep patterns to the rise of Fantasy Football and
social media sites that log our every written thought, the prevalence of big
data is plain to see -- but how do we digest it? Any lover of lists and data
needs a primer to cut through it. Whelan takes a complex subject and gives it
new sheen. I highly recommend this book for anyone who wants an accessible,
entertaining lens into the nature of data and statistics.

Philip Clarke, CEO of Tesco Plc

“True North: Discover Your
Authentic Leadership” by Bill George: An inspirational book about authenticity
in leadership. It reminded me to appreciate differences in people and that
there is no perfect profile of a leader.

Steve Kuhn, Partner and co-head
of fixed income trading at Pine River Capital Management LP

“Trading Bases: A Story About
Wall Street, Gambling, and Baseball (Not Necessarily in That Order)” by Joe
Peta: Was my favorite book of 2013. The author shows that the search for
“alpha” in baseball gambling could be a fruitful one. The book also has lessons
that extend well beyond baseball, indeed to all forms of investment. I bought a
copy for everyone on my trading team.

David Cote, chairman and CEO of
Honeywell International Inc.

As a lifelong Republican, it’s
ironic the two books that stuck out were recommended by high-profile Democrats.

“The Age of Wonder: The Romantic
Generation and the Discovery of the Beauty and Terror of Science” by Richard
Holmes: Nancy Pelosi, the leader of the Democrats in the U.S. House of
Representatives, suggested this. It really was an age of wonder because the
whole idea of science was on everybody’s mind. It’s this fascinating tie-in
about the early days of science and how that related to the literature of the
time.

“Lawrence
in Arabia: War, Deceit, Imperial Folly and the Making of the Modern Middle
East” by Scott Anderson: It was recommended by Steve Israel, a U.S.
Representative from New York
who headed the Democratic Congressional Campaign Committee during the 2012
elections. I find it just fascinating to get a sense of what was being dealt
with and how they looked at things and what was a good plan, but just didn’t
get executed well or didn’t happen because somebody didn’t make the right
decision. As a leader, that’s what I’m having to deal with all the time.

Alistair Darling, former U.K. chancellor
of the exchequer

“Making it Happen: Fred Goodwin,
RBS and the Men Who Blew Up the British Economy” by Iain Martin: An excellent
chronicle of the downfall of Royal Bank of Scotland Group Plc. The book draws
extensively on interviews from members of staff and charts the eventual downfall
of one of the world’s biggest banks.

“An Officer and a Spy” by Robert
Harris: A fascinating novel based on the notorious Dreyfus affair at the end of
the nineteenth century.

Barry Eichengreen, professor of
economics and political science at the University
of California, Berkeley

“Misunderstanding Financial
Crises: Why We Don’t See Them Coming” by Gary B. Gorton: Uses U.S. history to
fundamentally undermine what we thought we knew about financial crises.

“Prometheus Shackled: Goldsmith
Banks and England’s Financial Revolution after 1700” by Peter Temin and
Hans-Joachim Voth: Similarly uses history, this time the history of the British
industrial revolution, to challenge everything we thought we knew about the
connections between finance and growth. While it may not be possible to call
either “an enjoyable romp,” both books are exceedingly well written and, given
their use of historical evidence, considerably more entertaining than most
economic and financial writing. They are two fine examples of state-of-the-art
financial history that speak directly to current policy concerns. They will be
enjoyed by anyone who appreciates seeing conventional historical wisdoms
overturned.

Olli Rehn, European Union
economic and monetary affairs commissioner

“The Battle of Bretton Woods:
John Maynard Keynes, Harry Dexter White and the Making of a New World Order” by
Benn Steil: A great narrative -- both
very fluent and well-researched -- on the talks that created the International
Monetary Fund and the Bretton Woods system of international economic governance
which lasted, mostly successfully, until the early 1970s. John Maynard Keynes
is here as much a devoted defender of the British national interest as the
world’s leading analytical economist. Harry Dexter White, meanwhile, is shown
to be a Soviet spy or at least fellow traveler in first class, which is why he
never became the first-ever managing director of the IMF.

“Misunderstanding Financial
Crises: Why We Don’t See Them Coming” by Gary B. Gorton: Less linear than Alan
Blinder’s “When the Music Stopped,” which is perhaps the best overall account
of the crisis. But this is a more Minskyian and highly original analysis, which
shows the recurrence of manias and panics over the past 250 years and why the
decisions in the 1930s changed that, and no sweeping and systemic financial
crisis occurred in the U.S.
until 2007-2008. The Fed’s role as lender of last resort and the creation of
the FDIC in 1934 take the credit.

“Worldly Philosopher: The Odyssey
of Albert O. Hirschman” by Jeremy Adelman:
This is a magnificent biography that combines Hirschman’s personal
development as a committed reformist and social liberal, and as committed
European, with his scholarly development as a leading political economist of
his time. From the streets of Berlin in 1933
to Marseilles in 1940, from the lecture halls of
Berkeley in 1941 to Nuremberg
in 1945 and Columbia
and Harvard in the 1960s and 1970s, it is just an extraordinary life.

David Einhorn, president of
Greenlight Capital Inc.

“Lean In: Women, Work and the
Will to Lead” by Sheryl Sandberg (Einhorn’s cousin): Has been criticized for
addressing only a small subset of women, namely women who already enjoy a great
deal of privilege but still feel limited by a male-dominated business culture.
I think the critics miss the broader issue: while the system needs to change
and inevitably will, it is difficult for individuals to change it in the
short-term. In the meantime, Sheryl offers pragmatic advice about how to
succeed in the world as it actually is. And women aren’t Sheryl’s only
audience. Lean In points out systemic problems to people who, until now, might
have been oblivious to many of them. Sheryl has started an important
conversation, not just in “Lean In” circles, but in boardrooms. I think that in
a few years, her critics will take a different view. I appreciate Sheryl’s
common-sense approach to what’s been an intractable problem. My cousin has
written a brave and challenging book and, on a more personal note, it’s nice to
see Grandma Roz get the tribute she deserves.

Christopher L. Eisgruber,
president of PrincetonUniversity

“The Great Escape: Health,
Wealth, and the Origins of Inequality” by Angus Deaton: Tops my list of
must-read books for 2013. Deaton tackles big topics -- global improvements to
health and wellbeing, worrisome levels of inequality within nations and between
them, and the challenges to curing poverty through foreign aid. His powerful,
provocative argument combines careful analysis, humane insight, lucid prose,
and a fearless willingness to challenge conventional wisdom. Whether you agree
or disagree with its conclusions, this book will force you to rethink your
positions about some of the world’s most urgent problems.

Mohamed El-Erian, CEO of Pacific
Investment Management Co.

“Double Down: Game Change 2012”
by Mark Halperin and John Heilemann: Motivated by a desire to better understand
how politics is likely to influence economics and markets, I read a few books
this year on what goes on behind closed doors in Washington. I emerged with
more than just new insights on the powerful drivers of today’s unusual
political polarization. I also gained a better understanding of the changing mix
of tactical and strategic influences, the role of political lobbies and the
unexpected consequences of seemingly benign political deals.

“Double Down” provides its
readers with even more. Written in a flowing and engaging manner, it takes you
through two inter-related political journeys that converged into yet another
defining moment for America:
the November 2012 elections. Whether it is the difficulties both parties faced
in securing their political base while also engaging centrists, or the volatile
and competing claims on some politicians’ loyalties and values, Halperin and
Heilemann do a great job in explaining some of the disturbing realities of
today’s Washington
setup.

Importantly, they illustrate why
too many of the nation’s counterproductive political outcomes are in fact due
to quite rational political calculations and short-term incentives at the level
of individual politicians. None of the books I read this year suggest that America’s
political landscape will get less problematic in 2014. If anything, we should
expect even greater polarization and dysfunction. That is the bad news. The
good news is that due to books such as “Double Down,” we can all have a better
understanding of why.

Fredrik Erixon, director of the
European Centre for International Political Economy in Brussels

“China Goes Global: The Partial
Power” by David Shambaugh: China is today a consequential nation, but its
international economic and political personality is only partial and Beijing
remains uncertain about what it wants to achieve through international policy.

“The Battle of Bretton Woods:
John Maynard Keynes, Harry Dexter White and the Making of a New World Order” by
Benn Steil: The story of how the postwar system for the world economy was
designed -- and how a secret admirer of the Soviet Union, Harry Dexter White,
laid the foundation for U.S. global economic power by making the dollar a
global currency.

Niall Ferguson, professor of
history at HarvardUniversity

“War From the Ground Up:
Twenty-First-Century Combat as Politics” by Emile Simpson: Best book of the
year by a considerable margin. A veteran of the war in Afghanistan,
where he served as a Gurkha officer, Simpson is the most impressive
scholar-warrior to emerge from the “War on Terror” (a label he deplores).
Described by Sir Michael Howard as “a coda to Clausewitz’s On War ... a work of
such importance that it should be compulsory reading at every level in the
military,” “War From the Ground Up” should also be compulsory reading at every
level in the business world. Its paradigm-shifting arguments have implications
that extend far beyond the battlefield.

Peter Fisher, senior director of
BlackRock Investment Institute and senior fellow at the Center for Global
Business and Government at the Tuck School of Business at Dartmouth

“An Epidemic of Absence: A New
Way of Understanding Allergies and Autoimmune Diseases” by Moises
Velasquez-Manoff: Completely upended my (1970-vintage) understanding of biology
and made me think about all ecosystems -- biological and financial -- in a
completely new light, focusing on how we can mess things up not just by what we
add but by what we take away.

Richard Fisher, president of the
Federal Reserve Bank of Dallas

“Strange Rebels: 1979 and the
Birth of the 21st Century” by Christian Caryl: May be the year’s best. It
brilliantly documents 1979, when “the twin forces of markets and religion came
back with a vengeance” -- through Margaret Thatcher and Deng Xiaoping, the Iranian
Revolution, the start of the Afghan jihad and the pilgrimage of Pope John Paul
II to Poland -- and is a must-read for any serious student seeking to
understand what has ensued in the 21st century.

“Thomas Jefferson: The Art of
Power” by Jon Meacham: Provides remarkable insight about one of history’s great
transformational leaders.

“The Alchemists: Three Central
Bankers and a World on Fire” by Neil Irwin: Provides perhaps the best account
yet of the accidentally transformational leaders that central bankers became
with the financial crisis that erupted in 2007.

Jason Furman, chairman of the
U.S. Council of Economic Advisers

“The Bankers’ New Clothes: What’s
Wrong with Banking and What to Do about It” by Anat Admati and Martin Hellwig

“Misunderstanding Financial
Crises: Why We Don’t See Them Coming” by Gary B. Gorton: The best pair of
economics books I read. Both of them proceed from rigorous theory and careful
history to develop a single, all-encompassing narrative of the recent financial
crisis and what should be done to prevent the next one. But the explanations,
while individually compelling, are also diametrically opposed, with the former
focused on solvency and the later on liquidity. Reading them together forces
you to make up your mind or construct your own synthesis.

“The Charterhouse of Parma,” by
Stendahl: Years ago I was defeated in my attempt to read it but this year I
tried again. Once you get past the first hundred pages it turns into a
fast-paced combination of court intrigue, romance, adventure, and love story --
all set in the fictional nineteenth century Principality of Parma and told with
ironic detachment.

“Matilda” by Roald Dahl: Reading
this to my children (age five and six) was one of my biggest thrills of the
year.

David Farr, chairman and CEO of
Emerson Electric Co.

“Engineers of Victory: The
Problem Solvers Who Turned The Tide in the Second World War” by Paul Kennedy: A
truly fascinating read about the business people, soldiers, scientists and
engineers who made everything work for the political and military leaders --
the real people who got things done to win the war, and the individuals you
would never have known about who helped win the war. A very interesting read.

“The Book Thief” by Markus Zusak:
A much easier and very enjoyable read as I flew back and forth from India. It’s a
young person’s perspective of the enormous “hell” the youth and normal German
families lived through during Hitler’s time. About life in a small town outside
of Munich and
how she survived and helped people survive -- including an unexpected Jewish
friend. It’s a powerful and moving insight unlike any other World War II books
I have read -- through the eyes of “Death.” It does make you think about
untethered power.

Alan Greenspan, former Federal
Reserve chairman

“Coolidge” by Amity Shlaes

“The Battle
of Bretton Woods: John Maynard Keynes, Harry Dexter White and the Making of a New World Order” by Benn Steil.

Guy Hands, chairman of Terra
Firma Capital Partners

“Catastrophe 1914: Europe Goes to War” by Max Hastings: Should be read by
every politician who has any influence on international affairs. As Churchill
said, “Those that fail to learn from history, are doomed to repeat it.” Hastings writes
brilliantly and hopefully the message of how easily the world can move from light
to darkness through the misconceived actions of a few will drill itself into
the souls of those who rule us. Perhaps the powerful few can learn from Hastings, in which case
the powerless majority will be able to sleep more easily.

Glenn Hubbard, dean of ColumbiaBusinessSchool
and former chairman of the Council of Economic Advisers

“The Presidents Club: Inside the
World’s Most Exclusive Fraternity” by Nancy Gibbs and Michael Duffy: This
excellent read ties together leadership lessons imparted by president to each
other, with politics continuing, of course.

“Empress Dowager Cixi: The
Concubine Who Launched Modern China” by Jung Chang: This readable book is a
story of challenges, strategy, and leadership tracing the Empress Dowager
Cixi’s rise to de facto ruler of China for decades.

Justin King, CEO of J Sainsbury
Plc

“Best Served Cold: The Rise, Fall
and Rise Again of Malcolm Walker” by Malcolm Walker: Rarely is a business
person as candid as Malcolm, as he tells of the ups and downs of his Iceland
journey.

Jim Yong Kim, president of the
World Bank

“Creating Innovators: The Making
of Young People Who Will Change the World” by Tony Wagner: Examines how
creativity and innovation is sparked in young people. I’m asked all the time in
my travels, what kind of educational system is most likely to nurture the
development of innovators in any society? Through careful ethnographic analysis
and wonderful case studies, Wagner suggests that “play, passion and purpose”
are the key themes in understanding the emergence of creativity and innovation.
The relationship between education and innovation is a key question for so many
countries in the world looking to establish the foundations for economic growth
and job creation. Wagner provides important insights that should be very
helpful to both parents and policy makers.

Jeffrey Lacker, president of the
Federal Reserve Bank of Richmond

“Act of Congress: How America’s
Essential Institution Works, and How it Doesn’t” by Robert G. Kaiser: An inside
account of the sausage-making that brought us the Dodd-Frank Act.

“Banking Panics of the Gilded
Age,” by Elmus Wicker: I’m rereading this to bone up for the Fed’s centennial,
and because it’s a good antidote to superficial comparisons between 1907 and
2008.

“In the Name of Glory 1976: The
Greatest Ever Sporting Duel” by Tom Rubython: Recounts the epic, season-long
Formula 1 battle between James Hunt and Niki Lauda. It’s a thrilling tale
involving two utterly fascinating characters, and was the basis for the
excellent, recently released Ron Howard movie “Rush.”

Andy Haldane, executive director
for financial stability at the Bank of England

“The New Economics of Inequality
and Redistribution” by Samuel Bowles: Inequality and innovation could well be
the issues for the next decade or more. Many believe innovation, and its close
cousin globalization, cause inequality -- an unfortunate, but inevitable,
by-product. masterfully explains why inequality leaves a deep scar economically
as well as morally.

“The EntrepreneurialState:
Debunking Public vs. Private Sector Myths” by Mariana Mazzucato: Tells us that
government has often been the guiding light behind genuinely transformative
innovation.

If both are right, then they tell
an optimistic story. Innovation and equality can be cousins, not enemies,
provided government operates patiently to nurture future productivity and
skills.

Pascal Lamy, former director
general of the World Trade Organization

“Deep Sea and Foreign Going” by
Rose George: Apart from my work with the Global Ocean Commission and my
national service in the French navy, the sea has always held a fascination for
me. Even if you don’t share my enthusiasm, you should, since pretty well
everything we eat, wear and work with is carried by sea. Yet the shipping
industry remains almost invisible, despite over 100,000 freighters on the seas.
The book takes us behind the scenes to help us understand the often harsh
realities of modern merchant shipping. She covers many serious (and murky)
issues -­ whether environmental, legal, geographic or commercial ­- but also
reveals something of the various different people who make their lives on the
waves.

Bob Lutz, former vice chairman of
General Motors Co.

“Horse Soldiers: The
Extraordinary Story of a Band of U.S. Soldiers Who Rode to Victory in
Afghanistan” by Doug Stanton: Great true story of how a small band of CIA and
Special Ops guys got in the good graces of some of the anti-Taliban war lords,
and rode to what we thought was victory...until we gave it away a few years
later.

Paul Martin, former prime
minister of Canada

“The Inconvenient Indian: A
Curious Account of Native People in North America”
by Thomas King: Takes real talent to convey deep thought without the reader
knowing it. This is what Tom King has done, and on a subject matter that far
more of us should understand, but don’t.

“The War That Ended Peace: The
Road to 1914” by Margaret MacMillan: I am only halfway through the book and I
don’t want to put it down, but occasionally I must if I am to earn a living. On
the other hand, when I finish it, I will regret having done so because what I
will really want to do is read it again for the first time.

Laurie McIlwee, chief financial
officer at Tesco Plc

“Everybody’s Business: The
Unlikely Story of How Big Business Can Fix the World” by Jon Miller and Lucy
Parker: A very good account of what big businesses are doing to ensure they
have a greater chance of lasting success. The book focuses on what large,
well-run businesses do best, making products or services people need and
creating jobs. The book successfully argues, for me, that if big businesses are
run in the right way they can be incredibly positive forces for society and for
the benefit of all stakeholders (customers, suppliers, colleagues, shareholders
and the environment). It’s a heavy subject, but written in an engaging way,
filled with memory-jogging examples. The book uses a framework of 11
conversations, which are the big themes being debated from changes happening in
health, education and skills to the changes in society driven by technology.

Allan Meltzer, professor at CarnegieMellonUniversity’s
Tepper School of Business and author of books on the Federal Reserve

“The American Illness: Essays on
the Rule of Law”, edited by F.H. Buckley: The book that helped me most this
year. A collection of papers on the details of regulation and the loss or
weakening of the rule of law. Several of the papers provide detailed
information on the depressing and harmful effects of current and recent
regulations.

Axel Merk, president of Merk
Investments LLC

“Market Sense and Nonsense: How
the Markets Really Work (and How They Don’t)” by Jack D. Schwager. A must-read
book for any serious investor because it shatters conventional thinking about
efficient markets without reverting to exotic theories. Instead, it is common sense
applied to established theories that is enlightening.

Scott Minerd, chief investment
officer of Guggenheim Partners

“The Battle of Bretton Woods:
John Maynard Keynes, Harry Dexter White, and the Making of a New World Order”
by Benn Steil: An insightful book, bringing together two of my favorite topics
to read about, gold and money, in a narrative that reads like a political
thriller. The book offers a fascinating insight into the financial negotiations
during the final months of World War II and underscores that ending conflict is
not only about putting down guns but sorting out money matters too.

“The Alchemists: Three Central
Bankers and a World on Fire” by Neil Irwin. Five years ago, few people knew the
words quantitative easing, but since 2008 QE has become a catchphrase for
printing trillions of dollars to save the global economy from collapse. Ben
Bernanke, Mervyn King and Jean-Claude Trichet were at the center of that
unprecedented effort, which is revealed in great detail. This excellent volume
does something I always appreciate: revisiting economic history to help explain
our complex current predicaments.

“The Map and the Territory: Risk,
Human Nature, and the Future of Forecasting” by Alan Greenspan: He was for many
years the world’s best-known and most powerful central banker, so it was
refreshing to see him revisit his record in this book, penned after the 2008
global financial crisis, which prompted him to ask why economic policies fail.
As always, following the nuance of Greenspan’s reasoning is an education in
economics and markets.

Andrea Morante, CEO of Pomellato
SpA

“The Basic Laws of Human
Stupidity” by Carlo M. Cipolla: A very witty interpretation on stupidity. The
book addresses itself not to stupid people but to those who, on occasion, have
to deal with such people.

Helena Morrissey, CEO of Newtown
Investment Management Ltd. and founder of the 30% Club

“The Icarus Deception: How High
Will You Fly?” by Seth Godin: Icarus flew too close to the sun and perished. We
learn the lesson not to suffer from hubris, to avoid flying too high. Godin
points out that Daedulus also told his son not to fly too low, too close to the
sea, because the water would ruin the lift in his wings. This part of the story
is often overlooked, because, as Godin argues, it is inconvenient to those who
would have us be obedient and suppressed and more afraid of flying too high
than undershooting. That is just as dangerous, though -- as many of us end up
settling for far too little. The message of this brilliant book re-inspired me
-- we really can achieve so much more than conventional wisdom might have us
believe.

“The BRIC Road to Growth” by Jim O’Neill:
Offers pithy and compelling arguments about how far the center of economic
growth has already shifted to the emerging markets -- and the lessons that must
be learned from this shift. By showing the degree of change that has already taken
place, he powerfully illustrates the need for Western policymakers to be less
dogmatic, more adaptive. The final chapter is entitled “Rescuing Capitalism,”
with a call to action to become “more flexible, more open to lessons
from...this new world.” This resonates with me and echoes my own views about
why the European Union, with its bureaucracy, rigidity and rules-based
construct, is an outmoded model in a world where adaptability and agility are
essential.

Benjamin Netanyahu, prime
minister of Israel

“A Capitalism for the People:
Recapturing the Lost Genius of American Prosperity” by Luigi Zingales:
Zingales, a University of Chicago economist, talks about the benefits of free
markets and the danger to them of monopolization and cartels that are coming from
the private sector. I was very impressed by him. It’s a problem that afflicts
all free-market economies. There’s a difference between being pro-business --
that is, big business -- and being pro-market, which fosters competition. He
says we have the ability to allow real competition, to prevent concentration of
economic activity and unfairness, to enable the distribution of financial
resources in order to give the same tools for growth, distribution of growth
and the fruits of growth. This mission is not simple, because the state of Israel was
built with no small degree of economic concentration.

Benn Steil, senior fellow at
Council on Foreign Relations and author of “The Battle of Bretton Woods: John
Maynard Keynes, Harry Dexter White and the Making of a New World Order”

“The War That Ended Peace: The
Road to 1914” by Margaret MacMillan: My book of the year. The author is a
master of narrative history; indeed, her “Paris
1919: Six Months That Changed the World” was the inspiration for my own venture
into the genre. “The War That Ended Peace” is its prequel, if you will, in
which MacMillan brilliantly paints the complex and tragic tableau that tipped Europe into the Great War and the flawed peace that
followed.

Gordon Nixon, CEO of Royal Bank
of Canada

“The War That Ended Peace: The
Road to 1914” by Margaret MacMillan: A remarkable story and lesson on how
individual decisions can change the course of history and create global
upheaval. As in her “Paris
1919,” she provides extraordinary insight into the key players that, in this
case, caused or failed to stop the First World War.

Robert Zoellick, former president
of the World Bank and chairman of Goldman Sachs International Advisers

“Restless Empire: China and the
World Since 1750” by Odd Arne Westad

“Autumn in the HeavenlyKingdom:
China, the West and the Epic
Story of the Taiping Civil War” by Stephen R. Platt: Both offer fresh looks at China’s
multi-dimensional links to the West in an era the Chinese consider to be a
century of humiliation. In addition to the “might-have-beens,” these fine
books, which draw on Chinese sources, raise the intriguing question of what we
might learn when Chinese scholars are able to write honest histories.

“The General: Charles De Gaulle
and the France He Saved” by Jonathon Fenby: Offers English speakers their best
book on the incomparable Charles de Gaulle: amazing, demanding, and maddening,
de Gaulle’s unique sense of France -- and self -- defined the France that
arose after World War II.

“The Quest: Energy, Security and
the Remaking of the Modern World” by Daniel Yergin: Offers fascinating stories
about subjects that are, in the hands of others, oft-times technical and dense:
energy, security, technology, and the environment. Yergin’s range of knowledge
-- about characters, science, and policy -- enables him to wrap all within a
delightful narrative history.

Grover Norquist, president of
Americans for Tax Reform

“How Money Walks - How $2
Trillion Moved Between the States, and Why it Matters” by Travis H. Brown:
Explains where America
is headed by documenting where Americans are moving. Brown combines U.S. Census
data on American internal migration between states and IRS data on incomes to
chart how Americans and their money have been leaving high tax states and
moving to low tax/no income tax states. One can calculate not only how many
Americans on net have left New York and California between 1985
and 2010, but the annual income lost to those states as well. Texas gained a net 572,656 new residents
since 1985 with a net income gain of $24.94 billion since 1992. State level
politicians are sculpting their own future electorates by who they drive out
and who they attract.

“Unintimidated: A Governor’s
Story and a Nation’s Challenge” by Scott Walker: The Wisconsin
governor puts the lie to the quip attributed to Otto von Bismarck that “no one
would wish to see how their laws or sausage are made.” Now governor, and future
presidential candidate, Walker makes the story of passing legislation in 2011
that neutered public sector labor unions a fast-paced action story brimming
with union violence, 70,000-person mobs at the state capitol and enough
betrayals and heartbreak to fill a Kardashian weekend. Just as with World War
II spy thrillers you kind of know how this ends, but the read is compelling and
the narrative just may be the American future nationwide circa 2017.

Jim O’Neill, former chief
economist of Goldman Sachs Group Inc. and a Bloomberg View columnist

“Mexico,
The Great Hope” by Enrique Pena Nieto: This book by Mexico’s president gives powerful
and clear details behind one of the most ambitious reforms I have witnessed in
my career.

“The Orphan Master’s Son” by Adam
Johnson: An amusing but disturbing in-depth insight into life in North Korea.

Frank Partnoy, professor at
University of San Diego School of Law and author of “Wait: The Art and Science
of Delay”

“The Billionaire’s Apprentice:
The Rise of The Indian-American Elite and The Fall of The Galleon Hedge Fund”
by Anita Raghavan: A comprehensive, no-stone-unturned account of the Galleon
insider trading cases. Lots of scoop on Raj Rajaratnam, Rajat Gupta, and the
increasingly prominent role of South Asians

“The Buy Side: A Wall Street
Trader’s Tale of Spectacular Excess” by Turney Duff: At the other end of the
spectrum is a wild ride through several firms, including Galleon. There are
mountains of cash, crime, and cocaine. Shocking, I know.

“Smarter Than You Think: How
Technology is Changing Our Minds for the Better” by Clive Thompson: Argues that
we should embrace radical new technologies that help us improve our minds by
partnering with computers. I’m not going to start wearing Google Glass, but the
research and stories are compelling, entertaining, and counterintuitive.

Edmund Phelps, Nobel-laureate
professor at ColumbiaUniversity and author of
“Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge and
Change”

“An Uncertain Glory: India and its
Contradictions” by Jean Dreze and Amartya Sen: Is necessary and overdue. It
breaks the silence among India’s
educated classes over the mass poverty still very much in evidence in that
country, despite the progress, and it proposes large-scale government measures
aimed at reducing this poverty. The authors argue, pointing to Indonesia and China, that various government
measures -- even programs for wide medical care -- will do more to increase
growth than to slow it down. This stimulating book stands alongside some other
new books that urge societies to understand better the roots of economic
dynamism.

Dalton Philips, CEO of William Morrison
Supermarkets Plc

“The Everything Store: Jeff Bezos
and the Age of Amazon” by Brad Stone: While not an official biography and no
doubt there will be many who challenge the research, it’s a wonderful
page-turner about one of the most disruptive thinkers in the world. You get a
real sense of the insatiable appetite Amazon has to dominate the retail
landscape -- to literally be the “Everything Store.” Chilling stuff if you’re a
bricks & mortar retailer like I am.

“Eat and Run: My Unlikely Journey
to Ultramarathon Greatness” by Scott Jurek: The book has three main strands
going on concurrently, making a fascinating read. There’s a) the intriguing
life story of his journey to becoming one of the world’s greatest runners, b)
his love of food -- however it’s all things plant-based (vegan) -- as he
romances you through his story with mouth-watering recipes and c) the parallel
of his story to dominate against the odds in his field with that of the
business field (in my case retail). A real page turner.

Dan Pfeiffer, senior adviser to
President Barack Obama

“The Son” by Philipp Meyer: A
long but excellent read about three generations of one Texas
family dealing with the burdens of the past and the challenges of a changing Texas.

“The Sound of Things Falling,” by
Juan Gabriel Vasquez: A beautifully written book about how the choices we make
affect our lives forever, masquerading as a suspense thriller.

“Wellington:
The Path to Victory 1769-1814” by Rory Muir: I’m interested in history,
especially military history, and Wellington.

Dominique Senequier, founder of
AXA Private Equity

“Fugitives” by Alice Munro: A
book of very good and original novels.

“Memoirs of Talleyrand:” Eight
volumes written by him and edited by a small publishing house. A fantastic
journey through the late 18th century and early 19th-century politics in Europe.

Laura Tyson, professor at Haas
School of Business at the University
of California, Berkeley, and former chairman of the Council of
Economic Advisers

“After the Music Stopped: The
Financial Crisis, the Response and the Work Ahead” by Alan S. Blinder: An
insightful, well-written account of the financial crisis, its causes and the
remaining policy challenges

“The EntrepreneurialState:
Debunking Public vs. Private Sector Myths” by Mariana Mazzucato: A compelling
and timely account of the government’s essential role in fostering the
scientific research on which innovation and economic progress depend

“The Business Solution to Poverty:
Designing Products and Services for Three Billion New Customers” by Paul Polak
and Mal Warwick: A practical guide, replete with examples, of how to develop
for-profit scalable business solutions for the needs of bottom-of-the pyramid
customers

“What Money Can’t Buy: The Moral
Limits of Markets” by Michael J. Sandel: A thought-provoking analysis that
challenges the justice of market outcomes and raises concerns about the effects
of markets on societal norms and values.

John W. Snow, former U.S.
Treasury secretary and chairman of Cerberus Capital Management LP

“The Growth Experiment Revisited:
Why Lower, Simpler Taxes Really are America’s Best Hope for Recovery” by
Lawrence B. Lindsey: For someone looking to delve into the public policy issues
associated with tax reform, the book, by one of the leading macro policy
economists of our time, would be hard to beat. Newly published as a paperback
edition this year, it demonstrates why tax policy is an essential component of
a strong growth agenda.

“Nature’s Metropolis: Chicago and
the Great West” by William Cronon: The pioneering work in historical
methodology, which brings into play the intricate web of forces that lie
behind, shaped and created things we take for granted today, like the city of
Chicago. It is a brilliant work with far-reaching importance for anyone interested
in historiography.

“In the Presence of Mine Enemies:
The Civil War in the Heart of America 1859-1864” by Edward L. Ayers: By the
prominent Civil War historian, it also represents new directions in history,
bringing the reader a deep sense of the contingencies that lie behind the
historical record we know. It represents a truly original work on the Civil War
as it traces the relationship between two communities not far removed
geographically but on opposite sides of the conflict, providing a unique social
history of the time.

Tyler Cowen, professor of
economics at GeorgeMasonUniversity
and co-author of the Marginal Revolution blog

“My Struggle: Book Two: Man in
Love” by Karl Ove Knausgaard: There will be six volumes in total. Quite simply
this is one of the best novels ever written.

Martin Sorrell, CEO of WPP Plc

“My Autobiography” by Alex
Ferguson: There are tremendous parallels and lessons for our own business,
albeit we operate on a smaller (public) scale. Sir Alex has a lot of wisdom for
all of us, e.g. nourishing “home-grown” talent, meticulous planning,
man-management, team-building, playing the odds and motivation.

Timothy Adams, managing director
of the Institute
of International Finance

“The Everything Store: Jeff Bezos
and the Age of Amazon” by Brad Stone: Offers great insight into Jeff Bezos’s
secret sauce of breath-taking, disruptive success: a passion for perfection,
obsessive focus on the customer, big dreams, eagerness to explore new areas
(and occasionally fail) and a refusal to be stymied by the “corporate no” or
the status quo mantra of “we’ve never done that before.” I can’t wait to see
what Bezos does with my hometown paper, the Washington Post.

“The Luminaries” by Eleanor
Catton: Dickens-like in its sweep and ambition but so intriguing and readable
that even the Twitter generation will find it addictive. At 28, the author is
on a fast start to a stellar career.

Mark Tercek, president and CEO of
The Nature Conservatory

“Search Inside Yourself: The
Unexpected Path to Achieving Success, Happiness (and World Peace)” by
Chade-Meng Tan: A great “how to” book by a senior Google Inc. leader. This is
an especially good read for those Type-A personalities who are poor listeners,
uptight, unpleasant to be with, often in a hurry and always “right.” In other
words, this is a great book for someone like me. In all seriousness, there has
been lots of talk lately about “mindfulness” and its role in health and
happiness. Meng uses meditation and contemplation exercises to improve focus, clarity
of mind and awareness. I am a beginner and still -- as my colleagues will tell
you -- have lots of room for improvement. But I was delighted to find this
book. I suggest you also read it, practice what it preaches, and become a
better and happier person. This type of progress has huge benefits both at home
and at work.

Thomas J. Curry, U.S.
comptroller of the currency

“Camus: Portrait of a Moralist”
by Stephen Eric Bronner

“The Fall” by Albert Camus: I am
actually reading these now. It might be a little odd for a bank regulator to be
reading the biography and a work of an existentialist, but recently, I have
tried rereading books that I read in junior and senior high school. It is
interesting how differently you respond to a work in your youth and in middle
age.

Bjoern Wahlroos, chairman of
Nordea Bank AB

“The Forgotten Man: A New History
of the Great Depression” by Amity Shlaes: Europeans, and particularly our
central bankers, need to learn more about the Great Depression. As unlikely as
it may sound, the parallels to today are uncanny. Destroying an economy by
regulation, taxation, and deficit spending, while starving it of money, has all
been done before. It tells the story from the bottom up. We are once again
reminded that the road to doom can be paved with the very best intentions. For
the European reader, the book is definitely a deja vu experience -- and a scary
one at that.

William White, chairman of the
Economic Development and Review Committee at the Organization for Economic
Cooperation and Development

“Economyths: Ten Ways Economics
Gets it Wrong” by David Orrell: Lists its 10 crucial assumptions (the economy
is simple, fair, stable, etc.) and argues both entertainingly and convincingly
that each one is totally at odds with reality. Orrell also suggests that
adopting the science of complex systems would radically improve economic
policymaking, not least through emphasizing the continuous need to avoid truly
bad economic outcomes.

“The Rediscovery of Classical
Economics: Adaptation, Complexity and Growth” by David Simpson: Covers similar
territory in a more academic way. It also shows how the thinking of classical
thinkers (ending with John Stuart Mill) can be linked to complexity economics
through Austrian theory, especially the later works of Hayek.

“Economists and the Powerful:
Convenient Theories, Distorted Facts, Ample Rewards” by Norbert Haring and
Niall Douglas: Helps explain the remarkable tenacity of the mainstream belief
system in spite of its inherent implausibility and the strong counter evidence
provided by the ongoing global economic crisis and growing inequality. The
authors contend that the privileged seek to preempt change by cultivating the
belief that “all is for the best in the best of all possible worlds.” Sadly, it
rings all too true.

“The Bet: Paul Ehrlich, Julian
Simon, and Our Gamble Over Earth’s Future” by Paul Sabin: A short,
engagingly-written book, it is the story of the famous “bet” between Paul
Ehrlich, the prophet of the population explosion and environmental doom, and
Julian Simon, the advocate of technology and markets. They clashed over whether
the world was “running out.” As it turned out, Ehrlich got the fame, but
economist Simon won the bet. At the same time, the book is also an insightful
exploration of a half century battle over environmental policy. And it
certainly provides you with a perspective on today’s great environmental
debates.

Peter Liguori, CEO of Tribune Co.

“Gone Girl” by Gillian Flynn

“The Art of Fielding” by Chad Harbach

“Gulp: Adventures on the
Alimentary Canal” by Mary Roach: I read Roach’s 2008 book “Bonk: The Curious
Coupling of Science and Sex” and liked it.

Bertrand Badre, chief financial
officer of the World Bank

“Fateful Choices: Ten Decisions
That Changed the World, 1940-1941” by Ian Kershaw: I do fully appreciate how
the great historian enters into the “daily life” of World War II, be it the key
decisions taken in 1940-1941 (as why at the end it was not irrational for Japan
to attack the U.S. while knowing the chances of success were so limited, or why
Hitler made the decision to declare war on Russia given his limited strategic
options) or analyzing why Germany fought that long in 1945. It helps understand
what happened and how it happened. With the firm hope it never happens again.

“David and Goliath: Underdogs,
Misfits and the Art of Battling Giants” by Malcolm Gladwell: As always with him
this is witty stimulating and energizing. We all know that David should have
lost and Goliath won! Was it that obvious? Food for thought in the many
situations when the impossible seems so obvious. An invitation to consider
adversity with a brand new eye.

Dan Loeb, CEO of Third Point LLC

“The End of Illness” by David B.
Agus (one of Steve Jobs’s oncologists and a leading cancer researcher): This book
provides excellent evidence and research-based recommendations for practices
that lead to a healthier, longer life. It will pay for itself with the money
you save on supplements and vitamins you no longer purchase after reading it.

Sunday, October 27, 2013

Understanding the psychology, behavior and values of the rich &
would-be rich

I'd like to live as a
poor man with lots of money. --- Pablo
Picasso

The
following is a condensed version of my two-hours speech at the 2nd Financial Advisors
Congress on October 24, 2013 at the Carlos P. Romulo Auditorium, RCBCPlaza, MakatiCity:

Image below is from a mobile phone picture taken by Krisell Pedro and which she posted on Facebook, photo below showed the event host introducing me before my speech:

Almost everyone
wants to be rich or daydream to be rich, but not all think, behave and act to
be rich. I believe we are what we repeatedly think, what we repeatedly believe
and what we repeatedly dare to dream to
become.

Differences between the rich and not rich, kinds of rich people

Novelist F.
Scott Fitzgerald said: "Let me tell you about the very rich. They are
different from you and me.” True! That is why we should all aspire to be rich.

Remember
this---The world isn’t fair, life is not fair. In our Philippine society, if
you are rich you are “petite”, but if poor you are “bansot”. If you are rich
you have “scoliosis”, if poor you are “kuba”. If you are rich, you suffered a "nervous
breakdown" due to "tension and stress", but if poor you are "sira
ang ulo". If rich you are eccentric", if poor you are labelled as "may
toyo sa ulo", "may topak" or "may sayad". If you are
rich and not making good grades in school, you are described as a “slow
learner”, but if poor you are “bobo” or “gunggong”!

For those who
claim that “money cannot buy happiness”, the model Bo Derek once said: "Whoever
said money can't buy happiness simply didn't know where to go shopping."

Seriously,
before I discuss the mindset, behavior and values of the rich, let me first
define the different kinds of rich people. The late Enrique Zobel of the Ayala
Group and Bank of the Philippine Islands in the 1970s era of student
demonstrations, he said in a speech that he could categorize the rich in the
Philippines then into three groups – the “profligate rich, the idle rich and
the working rich”.

In
this speech, I am tackling only those who are in the “working rich” category,
including those who are the investing rich, the entrepreneurial rich and also
those people already on the way to becoming rich.

Whether as
financial planners, wealth managers, insurance brokers, branch managers,
private bankers, trust officers, securities brokers, investment solicitors, and
other professionals who offer financial advice and sell financial products, plus
me who is a business columnist, all of us are missionaries about the gospel of
wealth.

Image below of Tao Zhugong, the first taipan 2,500 years ago, image sourced from en.gmw.cn

Based
on my extensive interviews and studies of the rich, including my personal
experiences as an SME entrepreneur who started from scratch because our side of
the family wasn’t given our share of the inheritance, here are some ideas on
the rich and would-be rich:

Focus on
wellsprings or sources of cash flow, not just on assets--- Many people
think that being rich is about owning lots of assets, I think it is better
to own many wellsprings or sources of cash flow to be truly rich. This was
a principle of my self-made paternal great-great-grandfather Dy Han Kia who
became rich in 19th century Manila
by establishing five lumber and furniture-making companies.

Have an
investing mindset. --- It is not enough to have huge incomes, what is
key to wealth is to have an investing mindset.

A small
fortune comes from frugality and hard work, a big fortune is from the heavens.---My
late educator mother Mary Young Siu-Tin told me this old Chinese proverb.
What it means for us is this: by sheer hard work and non-stop thrift, we
can attain a minimum level of wealth in our lifetime.

Smart people know
how to utilize loan, or other people’s money, to grow wealth---My
former Ateneo accounting class professor, the banker Maurice Lim said this
to our class before and he is right.

Easy money is
often easily lost.--- John Gokongwei, Jr. once told me this in
passing, years ago before the rise of Napoles and her extravagant daughter.
Moral lesson? Don’t go for short-cuts, don’t go for get-rich-quick
schemes.

Take care of
your shinyong or creditworthiness---Pay
loans on time, safeguard your integrity among bankers, creditors and your
suppliers. Many of the rich flourished even without capital, their capital
was their shinyong.

Think of debt
or loan as an obligation, not as a windfall or income. --- We
shouldn’t also be addicted to too much and unnecessary debts. Mad magazine once said, which can
apply to many of us too: “The only reason a great many American families
don't own an elephant is that they have never been offered an elephant for
a dollar down and easy weekly payments.”

Do not be
afraid of discomfort for yourself or your family members, this advice is
true even for self-made entrepreneurs who are raising children thinking they
don’t want the kids “to suffer like they did before”. Don’t forget:
hardships, discomfort, injustices and struggles are part of the
character-building process for many of the self-made rich people in the
world.

Take care of
the small change, not just the big amounts. "A penny saved is a
penny earned," said Benjamin Franklin.

Do not gamble,
except calculated risks in business. Nobody wins in gambling except
the casinos. Do not follow example of my great-great-grandfather’s nephew
and successor Dy Chau Si, nicknamed “Lau Ah-Si” who gambled and lost 18
commercial shops in one evening in 19th century Manila.

Become rich by
helping enrich others.--- “Never forget: the secret of creating riches
for oneself is to create them for others,” said Sir John Templeton. We
enrich ourselves if we can help enrich not only our clients, our business
associates, investors and suppliers, but also our employees. China Bank has
one of the best corporate slogans: “Your success is our business”

Don’t forget
the ability to demand payment or collect. --- Lucio Tan years ago told
me this one principle from Tao Zhugong (722-476 BC), whose former name was
Fan Li. He was a statesman who became a tycoon 2,500 years ago in ancient China through
business and his wife Xi Shi was also one of the world’s most beautiful
women. Generating a lot of sales is not enough or is nothing, if we do not
collect well. Tao Zhugong’s 24 business principles are studied by many
overseas Chinese entrepreneurs worldwide.

Be fair to
people in business dealings. Andrew Gotianun and his wife Mercedes Tan
Gotianun of Filinvest Group and East West Bank
told me this phrase, which they said has guided the way they do business
for decades. I also learned this from my realty client before the late
Jane Mallare, wife of ethnic Chinese lawyer and World News publisher Atty. Florencio Mallare.

Low profit
margins and big sales volumes. --- This is an old Chinese business
strategy, look at SM stores of Henry Sy family, the Cebu Pacific Air and
the former Sun Cellular of John Gokongwei, Jr.

Invest in
people to reap riches --- “If you want one year of prosperity, grow
grain. If you want ten years of prosperity, grow trees. If you want one
hundred years of prosperity, grow people, ” said an old Chinese proverb.

Be an
iconoclast, think differently from the crowd--- “Buy when everyone else is selling and
hold until everyone else is buying. That’s not just a catchy slogan. It’s
the very essence of successful investing,” said J. Paul Getty, who was
named by the 1966 Guinness Book of
Records as the world's richest private citizen, worth an estimated
$1.2 billion (approximately $8.6 billion in 2012). “Be fearful when others are greedy and
greedy when others are fearful,” advised Warren Buffet, today the world’s
richest investor.

Warren Buffet image below, sourced from women2.com

Customer is
king, customer service is important--- “Customers are jade;
merchandise is grass,” said a Chinese proverb

Riches and big
companies start from small --- “The loftiest towers rise from the
ground,” this is an old Chinese proverb quoted by pre-war Iloilo’s
immigrant tycoon Pedro Marquez Lim to his grandson John L. Gokongwei, Jr.
when the latter was a little boy walking in Calle Rosario (now Quintin Paredes Street),
Binondo, Manila
and marvelling at the buildings. Let us patiently build up riches from
small beginnings and persevere.

Delayed
self-gratification is key to riches & success---Save and think for
the long-term, if necessary, self-sacrifice for the future generations.
The Hollywood actor Will Smith hit the
bull’s eye, when he said: "Too many people spend money they haven't
earned, to buy things they don't want, to impress people they don't
like."

Non-stop
education is source of riches and success. Primacy of education is
rooted in the moral teachings of the philosopher Confucius. I am not
referring to just the act of collecting school diplomas, but of non-stop
learning, reading, asking. Brian Tracy said: “Today the greatest single
source of wealth is between your ears.”

The goal is
not money itself, but excellence, productivity and fulfilment. Money is
only a scorecard. Why do many
of the so-called “working rich” keep on working still up to now, it is not
about the money, it’s the thrill, the sense of adventure and fulfilment in
creating and making the world a better place through one’s business and
vocation. The great philosopher Confucius said: “Find a job you love and
you’ll never work a day in your life.”

Success is our
birthright and destiny, we just have to struggle to claim it. Every
crisis, failure or obstacles are only temporary setbacks or aberrations,
because we’ll soon flourish! Don’t
forget: The poorest man on earth is not the person without money, but those
without a dream.

Giving is real
wealth--- Not only do I personally believe that being generous to others
is the best way to spend and truly enjoy riches, I also believe generosity
also brings us so much unexpected blessings and more wealth too.

Erich
Fromm said: “Not he who has much is rich, but he who gives much.” The self-made
tycoon Andrew Carnegie said: “Surplus wealth is a sacred trust which its
possessor is bound to administer in his lifetime for the good of the community.”
I’m not religious, but the Bible also said in Acts 20: 35: “The Lord Jesus
himself said: ‘It is more blessed to give than to receive.’ ”